Taxing Financial Transactions, Issues and Evidence

Matheson T, 2011 IMF Working Paper

In reaction to the recent financial crisis, increased attention has recently been given to financial transaction taxes (FTTs) as a means of raising revenue and helping to curb financial market excesses.

This paper reviews existing theory and evidence on the efficacy of an FTT in fulfilling those tasks and on key issues to be faced in designing taxes of this kind.